Fungibility

What is Fungibility?

Fungibility refers to the property of a good or asset that makes it interchangeable with other goods or assets of the same type. In other words, fungible assets are interchangeable, meaning that one unit of the asset is considered to be the same as any other unit of the same type and value.

For example, a $20 bill is fungible because any $20 bill can be exchanged for another $20 bill, regardless of its history or origin. Similarly, a barrel of crude oil is fungible because one barrel of crude oil is considered to be the same as any other barrel of crude oil, regardless of its source.

Find out more on Understanding Fungibility in Bitcoin.